Paytm shares rebound after sliding below Rs 1,000 mark for first time ever

Paytm parent One97 Communications’ shares returned to green territory on Friday after sliding below the Rs 1,000 mark for the first time ever. Paytm shares ended 8.4 percent higher for the day at Rs 1,118.4 on BSE, recovering after hitting a record low of Rs 995 during the session.

The Paytm stock has made a series of lows in the past few sessions, and failed to cross the issue price since its secondary market debut on November 18. At the latest record low, Paytm shares changed hands at a discount of 53.7 percent to the issue price of Rs 2,150.

Paytm Co-Founder Vijay Shekhar Sharma has said that the company’s IPO came at a time when global markets were already risk-averse due to a confluence of factors, which affected its performance.

“Globally, we probably went in at a time when QE, free money and many other parameters brought a little spook out of the market. South American companies are over 70 percent down. That’s not the reason completely. That’s a macro reason,” he said at the IAMAI’s India Digital Summit 2022.

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Paytm’s IPO, the biggest of all time in India , saw an overall subscription of 1.9 times the shares on offer. Though fully subscribed, the public offer did not come even close to the kind of investor interest enjoyed by most IPOs in 2021.

Paytm shares debuted on stock exchanges BSE and NSE at a discount of around nine percent to the issue price, and have failed to cross even the listing day high of Rs 1,961.1.

maintained its ‘underperform’ rating for Paytm and cut its target price for the stock by one-fourth to Rs 900. A number of brokerages are sceptical on the stock. Earlier this week, Macquarie

loans worth Rs 2,180 crore in Q3, as against Rs 470 crore in the corresponding period a year ago. Its Paytm’s gross merchandise value (GMV) more than doubled to Rs 2.5 lakh crore from Rs 1.12 lakh crore in the year-ago period. In a business update, Paytm reported a four-fold jump in loan disbursals togross merchandise value (GMV) more than doubled to Rs 2.5 lakh crore from Rs 1.12 lakh crore in the year-ago period.

Paytm is yet to report its financial results for the quarter ended December 2021. For the July-September period, it reported an 8.5 percent increase in net loss on a year-on-year basis to Rs 473 crore. That despite a 63.6 percent increase in revenue to Rs 1,086.4 crore.